Individual and panel interviews with A.M.BestTV
Hugh Barit, chairman and CEO, Performa, said insurance captives sponsored by auto dealers tend to invest for return, with a larger portion of their assets devoted to equities.
Jack Meskunas, senior director, Oppenheimer, said captive insurers are typically heavily invested in bonds and could be affected if interest rates were to rise dramatically.
Bob Gagliardi, senior vice president, AIG, said captive insurers tend to invest in a small range of assets, but many are able to move into other areas of investment.
Jeff Kenneson, senior vice president, R&Q Quest Bermuda, said risk-retention groups looking to unload business, and retiring captive sponsors are active sources of runoff coverage.
Matthew Latham, head of captive programs, XL Catlin, said more stringent governance and capital requirements are causing sponsors to decide whether they want to commit to their captive or consider other approaches.
